American Economic Review · 2012 · 920 citations · 46 references
Social SciencesConflict StudiesEconomicsArmed ConflictBehavioral EconomicsPolitical ViolenceAggressionConflict CausesConflict In AfricaSocial PreferencesViolenceAltruistic MotivesLong-run BehaviorNatural Field ExperimentsPolitical Violence DynamicsRandomized Field ExperimentsTime Preferences Under Uncertainty
We use a series of field experiments in rural Burundi to examine the impact of exposure to conflict on social, risk, and time preferences. We find that conflict affects behavior: individuals exposed to violence display more altruistic behavior towards their neighbors, are more risk-seeking, and have higher discount rates. Large adverse shocks can thus alter savings and investments decisions, and potentially have long-run consequences—even if the shocks themselves are temporary. (JEL C93, D12, D74, 012, 017, 018)
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Prospect Theory: An Analysis of Decision under Risk
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